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Advertising & Sales Promotion V5

1. Duncan defined Integrated Marketing Communication (IMC) as �the process for

managing the customer relationships that drive brand value�. In this context,
discuss the various factors responsible for the growing importance of IMC.

2. Distinguish between five different forms of advertising, giving a specific

example of each.
3. How companies do their advertising campaign planning ? Explain each step in
detail
4. Explain five functions of advertising
5. Write notes on following (All questions to be answered. Minimum 1 full page for
each question)
a. Brand Parity
b. Clutter
c. Percentage and scheduling
d. Flighting schedule of advertising
e. Hierarchy of effects model

6. What is the difference between the media planning and media buying? Briefly
describe the various tasks of media planners and buyers

7. What criteria can be used to help a company decide between an in-house

advertising group and hiring an external advertising agency?

8. What is puffery? Should a company use a great deal of puffery in its ads? Why or
why not

CASE STUDY �
CADBURY CELEBRATIONS

All over the world, chocolate is one product that gets almost uniform recognition.
This is the product which is normally targeted at the younger age groups across the
world. Though, of course, there is no such specific age group that can restrict the
target for chocolates. It is also universally true that chocolates are generally
used for celebration; they signify sharing of joy and happiness. It is a perfect
gift for all, irrespective of the age they belong to. But this scenario does not
hold true to the fullest in the Indian context. India is different with respect to
culture, ethnicity, consumer outlook, festivities, etc. Hence, internationally-
marketed products are advertised differently here. Cadbury India Ltd., which has a
global presence, stresses extensively on the media and advertising. The
advertisements are innovative and customer-focused.

Ethnicity and culture are largely country-specific and region-specific. It is

difficult to set the framework to decide the cultural and ethnic appeals for a
particular customer segment. But there are certain ethnic aspects which connect
cultures despite their variations in caste, religion and race. It is interesting to
note that these aspects design the advertising and positioning strategies for a
product such as chocolate.

India is very peculiar in its eating habits. The food preparation though different
in various regions and cultures, there is one common thread that binds, i.e.,
sweet. The sweets are particularly homemade and very different from the sweets the
world over. Many are freshly made and consumed in a very short time span. The
variety is wide and the occasions are numerous. With this backdrop, Cadbury, one of
the oldest chocolate manufacturers in the world, has made its entry into Indian
market with its unique positioning strategies through innovative advertisements. It
has not only been able to establish itself as the largest chocolate manufacturer in
the country, but has made a silent entry to eat a small chunk of share of the
Indian sweet market. Its advertisements give a fine insight into how the
advertisements stride into the culture and ethnicity of India. The eating habits of
the Indians are different from other nations in many aspects. Their taste for
sweets is also different. The kind of sweets to be offered on different occasions
is also region-specific or custom-driven. In the light of this distinctiveness, the
positioning of Cadbury �Celebrations� is very unique. Its advertisement has been
able to catch up on the Raksha Bandhan Festival very well. There is a tradition
across the nation for a girl to tie a rakhi to her brother and, in turn, he gives
her a gift and sweet box. The sweet box over here is being replaced by the
chocolate box of Cadbury�s �Celebrations�, a different kind of chocolate. This
advertisement does not only ensure that the chocolates will be an integral part of
raksha bandhan henceforth, but also makes a silent entry to fall into the category
of Indian sweets.

One of the advertisements unearths a very embarrassing situation which most Indians
are exposed to. There are many occasions during which the gifts have to be offered
according to the customs and as per the decorum goes these gifts are not to be
opened in front of the guests unlike in many other countries. This supports passing
on of the unwanted gifts and then a situation arises when the same gift comes back
to the original giver after passing many hands.

The advertisement of Cadbury �Celebrations� pinpoints this particular episode very

elaborately. It also whispers in the ears of those Indians about certain black
patches in the name of culture which we can avoid. Though sweets are meant for
festivals and celebrations they can become a part of any moment which brings joy.
This is the theme of Cadbury�s Dairy Milk (CDM) famous advertisement. There are
many peculiarities about this copy. Firstly it, associates any happy moment with
chocolate for all the age groups for any small moment of joy, say the arrival of
new neighbor, or the first sign of mustache for a teenager or getting a new bike
for college going friend. One more important aspect depicted in it is about the
friend breaking the CDM on the new bike as a replacement of coconut. The
picturization of such situations takes the direct entry into the minds of all the
customer segments with different mindsets. Cadbury Dairy Milk (CDM) is the flagship
product of Cadbury. Hence, it is advertised in many different ways. Here is one
more instance of how it has entered into the hearts of rural India. The
advertisement talks about �Miss Palampur�, a title won by the cow owned by a
farmer, and the villagers are happily distributing sweets, i.e., CDM. Bollywood
actor Amitabh Bachchan, who is featured as the proud owner of Radha, the cow, ends
the commercial saying that she will appear in the films next year. This masterpiece
projects the psyche of rural masses. Distributing CDM in place of sweets is again a
unique feature. All the advertisements of �Celebrations� series of Cadbury are
unique. They make a smooth entry for perfect gift on occasions such as Deepavali
which cannot be celebrated without sweets. Though chocolate does not fall into the
category of Indian sweets, Cadbury Celebrations Dry Fruit collection certainly
rinds the perfect place. The giggle, Rishtey pakne do with Amitabh Bachchan makes
it more attractive. This is a unique way of acclimatizing advertising strategies
with the deep understanding of ethnic marketing. Though the integral part of
Deepavali celebrations is sweets �Celebrations Dry Fruit Chocolate Box� has
received an overwhelming welcome on the festive occasion. The hilarious piece of
advertisement for Perk is an instance of how valuable mythological reference can
be. Bollywood actress Preity Zinta requests Yamraj to pull her up while she is
falling down in a valley. She removes Perk from her pocket and since Yamraj is
tempted to eat it himself, he forgets about her time of departure from this
material world. It ends with the association of Yam to Yummy. This advertisement,
though a bit cynical about the Indian mythology, gives an insight into how ethnic
aspects can be incorporated in the advertisements of non-indigenous products, so
that they can secure a place in the minds of the target audience.

Advertising in itself is an attention-grabbing field for research. The television

commercials are all the more appealing since the picturization of a situation
connects the customers directly.

Various cultural aspects facilitate the viewers to get into the roles of the
personalities portrayed in the advertisements. Since the personalities in the
commercials are a direct reflection of the viewers, the impact of these
advertisements is many folds. The recall level also is high with these commercials.
This also allows the viewers to associate and reconfirm their own feelings. In
turn, the brand image gets crystallized in the minds of the consumer to allow them
to evaluate the brand against the competitor brands. Cadbury�s advertisements are
unique in many ways since they associate and focus on many ethnic features from the
Indian ethos. The advertisements, being brandspecific, provide the flexibility and
creativity. In turn, they connect to various customer segments very well, which
provides larger scope for accommodating a variety of customer segments for
different brands.

The advertising message is also governed by the creative strategy used to arrive at
the message. Discuss the various types of creative strategies that Cadbury can use
in its advertising campaigns (Answer must be spread in minimum 2 -3 complete pages
with calculations, tables, pictures, graphs etc., as applicable)

SECTION C
Any paid form of non-personal communication about an organization, good, service,
or idea by an identified sponsor is called---
Publicity
Sales promotion.
Advertising.
Personal selling.
Advertising that promotes a specific brand's features and benefits is---
Institutional.
Hierarchical.
Pioneering
Competitive.
Reminder advertisements are especially effective for products in which stage of the
product life cycle?
Introduction
Growth
Maturity
Maturity
A concern when using sex appeal is---
What men find sexy, women don't.
What women find sexy, men don't.
Sex appeal fails to gain audience attention.
The sex appeal of the ad distracts the audience from the product.
Billboard advertising is most effective for which type of advertisement?
Pioneering
Advocacy
Reminder
Comparative
The offer of one free pizza with the purchase of two pizzas at the regular price
might appeal to you one evening. What is the term for this incentive offer?
Mass-market communication
Customer-oriented encoding
Consumer-oriented sales promotion
Consumer encoding
Which type of sales promotion is used when a manufacturer places one small bottle
of shampoo in a clear bag and hangs it from the door of each house in a
neighborhood?
A sample
A deal
A premium
A point-of-purchase display
Sales tools used to support a company's advertising and personal selling directed
to wholesalers, retailers, or distributors are called---
Trade-oriented sales promotions
Consumer promotions
Manufacturers� promotions
Sales promotions

The increasing efforts by advertising agencies, trade associations, and marketing

associations to impose standards upon themselves that reflect the values of society
are called---
Legislation.
Self-regulation
Business practice.
Ethics.
Reimbursing a retailer for extra in-store support or special featuring of--- the
brand is called
Promotional allowance
Merchandise allowance
Case allowance
Finance allowance.
A concern when using humor appeal is---
What adults find humorous, children do not.
What children find humorous, adults do not.
Most humorous advertisements make someone feel offended.
Humor tends to bore consumers quickly, causing "wearout."
The objective of distributing coupons is/are to---
Stimulate demand.
Stimulate demand.
Encourage present customers to buy more, and minimize brand switching behaviour.
Encourage new product trial.
The objective of using premiums is to:
Encourage customers to return frequently or to use more of the product, and to
build goodwill.
Increase trial and retaliate against competitors' actions.
Encourage present customers to buy more; minimize brand switching behaviour.
Encourage new product trial.
The objective of using contests is to---
Stimulate demand.
Increase trial and retaliate against competitors' actions.
Encourage present customers to buy more; minimize brand switching behaviour
Encourage new product trial.
DAGMAR stands for---
Dealing with advertising goals for measured advertising ratings
Defining adverting goals for measured advertising results
Describing advertising goals for measured advertising results
None of the above
All marketing activities that attempt to stimulate quick buyer action or immediate
sales of a product are known as---
Sponsorship
Advertising
Personal selling
Sales promotion
Which one of the following is the greatest obstacle to implementing integrated
marketing communications?
Few providers of marketing communications services have the skills to execute IMC
programs
There is a lack of interest in IMC by top management.
The cost for implementing an IMC program is difficult to justify.
Little can be gained by coordinating the various marketing communications elements
A detergent that advertises how clean it gets clothes is appealing to the
__________ consumer need.
Functional
Symbolic
Biological
Utilitarian
The process of translating thought into a symbolic form is known as ___________.
Encoding
Feedback
Noise
Decoding
By definition, ____ simply means that consumers come in contact with the marketer's
message
Perception
Exposure
Attention
Comprehension
Which of the following is NOT a requirement for setting advertising objectives?
Objectives must specify the amount of change.
Objectives must be stated in terms of profits.
Objectives must be realistic
Objectives must be internally consistent.
A (n) __________ advertising objective is aimed at achieving communication outcomes
that precede behavior.
Precise
Planned
Indirect
Direct
The first step of the objective-and-task method is __________.
Assessing the communications functions
Establishing specific marketing objectives that need to be accomplished
Determining advertising's role in the total communication mix
Establishing specific advertising goals in terms of the levels of measurable
communication response required to achieve marketing objectives
A clothing store that sets their advertising budget by following the major
competitor and adding an additional 15 percent is using the __________ method.
Percentage-of-sales
Arbitrary allocation
Objective-and-task
Competitive parity
A good copy-testing system needs to provide measurements that are ____________.
Relevant to the advertising objectives
Relevant to the advertising objectives
Relevant to the advertising media
None of the above
Strength of radio advertising is ___________.
The ability to reach segmented audiences
The ability to reach prospective customers on a personal and intimate level
Low cost per thousand
All of the above
Which of the following is NOT a problem with television advertising?
Escalating advertising costs
Erosion of television viewing audiences
Substantial audience fractionalization
Inability to achieve impact
The concept of effective reach states that fewer exposures to advertisements are
required
When humor is used
When comparative advertising is used
For brands with higher market shares and greater customer loyalty
For expensive products
n a _________ advertising schedule, advertising is used during every period of the
campaign, but the amount of advertising varies considerably from period to period
Flighting
Dated
Plotted
Pulsing
Which method of setting an advertising budget relies on analyzing competitors'
spending?
Percentage-of-sales method
Objective-and-task method
Competitive-parity method
Affordable method
Soaring media costs, focused target marketing strategies, and the growing array of
new media have increased the importance of ________.
using humor to capture audience attention and interest
the competitive-parity method of setting a promotion budget
media planning
the affordable method of setting a promotion budget
The Internet, video on demand, and DVRs (digital video recorders) present which of
the following problems for marketers?
Consumers have difficulty attending to specific advertising messages due to
advertising clutter.
Advertising is becoming more expensive
Consumers are watching less television.
Audiences are less interested in media consumption
Developing an effective message strategy begins with identifying ________ that can
be used as advertising appeals.
Customer benefits
Emotions
Sales promotions
Advertising specialties
Which of the following is not one of the major steps in media selection?
Selecting specific media vehicles
Choosing among major media types.
Deciding on reach, frequency, and impact.
Deciding on format elements
Scheduling ads unevenly, or ________, builds awareness that is intended to be
carried over to the next advertising period.
Hard hitting
Sequencing
Continuity
Pulsing
________ use several tools, including the news, speeches, and special events.
Public relations professionals
Media planners
Advertising specialists
Advertising agencies
A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional
salespeople to sell its products to wholesalers and cities. This is an example of
________.
Sales promotion
Direct marketing
Public relations
Personal selling
You receive a report that says the 68% of your target market had been exposed to
your ad campaign during a given period of time. This is an example of ________.
Reach
Engagement
Impact
Frequency
A brand's advertising budget is often dependent upon the stage of the product life
cycle that it occupies. What stage would a product be in typically if large amounts
of money were being spent to develop awareness and persuade consumers to try the
product?
Decline phase.
Introductory phase
Mature phase.
Growth stage
A marketing services firm that assists companies in planning, preparing,
implementing and executing all or portions of their advertising programmes is
called---
A company
An ad agency
A retail outlet
A distributor

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